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100% Sure Thing?
Bernanke did himself and the American people a great disservice tonight. He said that he was 100% certain that “He” could contain the consequences
of his policy of quantitative easing. No person in a position of
responsibility should make such bold statements. There is always risk.
Bernanke’s TV fireside chat was a bomb as a result of this gross misstatement of the risks of the Fed's monetary policy. There is a “zero” chance that QE will end badly?
Please, that is idiotic and insulting. The thousands of people around
the world who have stood up and said it is voodoo economics are all
wrong? Talk about hubris.
I’m not going to write the article documenting the Fed’s prior mistakes.
To suggest that they will not err this time around is too much of a
stretch. Ben should have acknowledged that there is risk. That he and
his mates don’t sleep at night knowing they have crossed a line to the
dark side of monetary policy. I wanted to see a humble Ben. One who said
that he is facing a daunting task, one where the risks of action and
inaction are substantial. But he chose to brush it all off. He is either
blind to history (that he claims to study), he is lying or he made a
boastful statement of his powers that are totally unjustified.
History is unkind to those who look into the future with myopic eyes and
see the outcome of an uncertain world as 100% certain. Ben made some
history tonight, but we won’t know about it for a few more years. Then
we will be looking at Ben’s video with both a laugh and a cry.
For the record. Ben is not printing money. He is monetizing debt. He is,
in effect, financing the current deficit of the government. He is
actively intervening in the bond market. There is no limit that has been
established for this policy. Ben said tonight he would do more if it
suits him. Monetizing debt is a desperate act. That we are doing it will
make us desperate.
In my opinion QE is not necessary and exposes the global economy to a
variety of risks. There will be little benefit to the US economy. We
will have a long-term headache as a result. Ben’s persistence with QE at
this juncture looks like a gamble by a desperate man. He was slapped
down of late and made the unusual (unprecedented?) step of going on
nationwide TV to say that all is well and not to worry.
I’m worried. I think the market for the dollar and gold will read it as I do.
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That looks to be the bottom line. I took note of that Rickards quote too.
Bernanke needs reigned in if not he is going to ruin this country. I would immediately ask for the Fed to be audited and close this nonsense down. IF bankruptcy of banks occur guess what we will survive. If the dollar loses its value and reserve currency status guess what happens to the rest of us.
So what? Who gives the US the right to be the hegemon?
You will have to live like the ROW. No FIRE economy, real work. Fight for it, support the Bernank, have faith and GOLD! The 64k question is how and when it's show down.
Mad Ben thinks "rest of the world is fool" but actually he is the most idiot person and I don't know how 300 million Americans are tolerating him?
You'll have to ask them during the commercials of Dancing with the stars/American Idol/...
Well done Bruce, as usual.
"...the problems in the subprime markets seems likely to be contained,"
"It is not the responsibility of the Federal Reserve - nor would it be appropriate - to protect lenders and investors from the consequences of their financial decisions."
Cheers,
Ben
I agree completely - but I think he's stuck. He's not trying to destroy America. He fears any admission of the potential that they have this wrong will encourage the doubters. That it would encourage the new congress to legislate against him, and that it would accelerate the loss of faith in the dollar. I agree with you, I would have more faith in the dollar if they Fed was humble - but they are not making their pitch to you - they have a different audience in mind. An audience much less tuned-in to the reality of our fiscal situation.
The history lesson is clear: Fiat currency and representative government are incompatible. These guys feel they must lie to us. That their activities are so outrageous that they are only brought to light after FOIA lawsuits. That cannot be good economic governance. The Fed can't take sunlight.
Fiat currency and representative government are incompatible. These guys feel they must lie to us. That their activities are so outrageous that they are only brought to light after FOIA lawsuits. That cannot be good economic governance."
Donutboy, your wisdom shines. Thanks for the plain speech.
Behind all great fortunes is great unfairness.
Of course Bernanke is purposely destroying America!!!
He and the rest of the FederalReserve and huge banks and financial institutions is literally trying to steal everything of value on planet earth... after which they'll start a space program.
Speaking of monetization, I wonder if, perhaps you have read this, Bruce.
professorfekete.com/articles%5CAEFFederalReserveAsAnEngineOfDeflation.pdf
Get ready quickly. Right after he said the sub-prime market was contained the world blew up.
Excellent analysis, as usual, Bruce
"If you wish to believe that I am not an employee of foreign bankers, whose only goal is your death, you are a dunce." - The Ben Bernank
It's all about the survival of the Fed and its distribution/franchisee system.
Ben could not have been more arrogant, or more wrong. One of your best posts, Bruce. You nailed the jello to the wall!
I agree. There is no way The Bernank can say 100% he can control inflation. He never even saw the 2008 crises coming, even as Greenspan came out of retirement to make loud warnings.
Even if The Bernank could turn off inflation at will, it won't restore a 40%+ loss of value to the USD in his fury of debasement.
There's still: "no place for fiat to go but gold"
The quivering lips gave it all away.
Many months ago I noticed a little cracking in his voice during a speech to congress. I think the situation with our obscene deficits is so dire, he has been bluffing since 08 and knows the event horizon is coming, confidence is getting stretched thin, and the real scheme - monetization - will be uncovered for the world to see.
We at the Fed made a terrible mistake and would like you to return all the money we did not print in exchange for all the collateral you gave us.
Gold rumbling on the launch pad, Bennie-bitch -- rumor is you got nothin but your printing press. What's the redline on that thing?
Which one is better for Ben? A guillotine or an electric chair?
I believe he should be drug through the streets with a chain by his boots until there is only chain and boots, OR
Publically impaled.
That arogant SOB.
As I have posted before, he will pull the trigger himself. His glock 40 is loaded waiting for him. It will be on a Tuesday night into the wee hours of Wednesday.
The scenario is that on the fateful preceding Monday, the system will have followed a hockey stick formation in a hypebolic fashion, were there are not enough digits even in the supercomputers to depict the QE infinity.
This vertical line will collapse from its own weight and reality will prove him wrong.
Bang goes dah ho!
So a banker who has servants and minions do everythign for him suddenbly becomes a member of the do it yourself club?
I too find it hard to believe.
Waylon Smithers: Oh my God, sir, they've stolen everything. It's so depressing.
Montgomery Burns: Well, Smithers, I don't believe in suicide but -- if you'd like to try it, it might cheer me up a bit.
A public stoning with very small stones.
A public stoning with gold bullion.
(I'll clean up the clutter.)
100% sure thing: Bernanke == Blatant Liar.
silver sure ERUPTED. Crude following suit too. Gotta get mo of those eagles..
A liar with a high IQ and an invite to be interviewed by every CNBS affiliate in the world. Dangerous indeed.
He has to pretend to be 100% sure.
Otherwise I think we know the consequences.